An Automatic Bank System for Client Credit Rating Determination

LyakhovetsAlyona Lyakhovets recently passed her MPhil viva at the Wessex Institute of Technology with a thesis entitled “An automatic bank system for client credit rating determination”. The external examiner was Dr Nathan Clarke from the University of Plymouth and the internal examiner was Dr Radovan Gospavic.

Alyona received her first degree in software developing of automatic systems from the Kharkiv National University of Radioelectronics (KNURE), Ukraine. Afterwards she started her MPhil programme at Wessex Institute of Technology.

In her thesis Alyona investigated the problem of bank client solvency determination. In the world of banking practice the client’s solvency appears to be one of the main objects of evaluation when the bank determines reasonability of crediting and the forms of credit relations with the client. Probability that the client repays the debt is related to many factors.

Alyona researched crediting technologies and in the thesis said that the development of crediting technologies is evidence of market stability and a return of banks to their top-priority function, which is crediting of the real sector.

In the thesis Alyona analysed the data used by banks in the process of crediting operations performance. On the basis of the performed analysis the scheme of the data base, which is used by the bank, was designed. In this work the basis of the bank client’s solvency determination was studied, existing methods of client solvency determination methods were analyzed, the method of artificial neuron networks was presented and the method of the bank client’s solvency determination was developed and implemented a software solution. The presented method was formalized and had an undeniable advantage over the formalized methods, which are based on the ball valuation.

Therefore, due to the presented system Ukrainian banks, which work in the complicated conditions of hard competition, can obtain significant competitive advantages. The developed system also saves time for both the banker and the client. The significant decrease in work costs also increases the economic effect. This service is very attractive to the users. And the increase in the quantity of customers greatly improves the competitive position of the bank in the market.

In concordance with the research results, it can be stated, that the developed method is new and shows better results. This method is implemented in the application domain of bank structures, but it can be applied in different areas.

As a result of her research, both examiners recommended that Alyona be awarded the degree of Master of Philosophy.

Grateful acknowledgement is given to the Foreign and Commonwealth Office for their support.